Market Wrap: Wall Street Ends Higher on Energy Rebound

NEW YORK -- U.S. stocks rose Thursday, with energy shares leading the advance as crude oil rebounded off a sharp decline, while investors bet that companies would top lowered expectations this earnings season.

The day's gains were broad, with eight of the S&P 500's 10 industry sectors up on the day. The market extended its gains in afternoon trading, putting the S&P 500 about 1.3 percent away from its record close.

Equities have struggled for direction of late, with investors seeing limited upside potential in equities, but also few alternatives for yield. Many investors are looking ahead to the first-quarter earnings season for market guidance.

Earnings for S&P 500 companies are seen falling 2.8 percent in the first quarter, according to Thomson Reuters (TRI) data, compared with the rise of 5.3 percent that had been forecast on Jan. 1. The drop in profits is largely related to strength in the dollar, which analysts said wouldn't necessarily be a long-term detriment to stock prices.

"To the extent the dollar means companies are losing business, it's a problem, but if earnings are just being translated into a stronger dollar, that's less of a problem," said Jim McDonald, chief investment strategist at Northern Trust Asset Management in Chicago.

"An earnings recession is only a real problem for stocks if it is accompanied by an economic recession, which isn't the case here. We're positioned for an upside move as expectations have been lowered to the point where we're set up for a positive surprise."

Earnings Season

Among early reporters, Alcoa (AA) fell 3.3 percent to $13.22 a day after it reported revenue that missed expectations. Bed Bath & Beyond (BBY), which also reported weaker-than-expected results late Wednesday, fell 5.4 percent to $73.46.

The energy sector climbed 1.5 percent on the back of a 1.8 percent rise in Brent crude, which rebounded from a drop of 6 percent Wednesday. Continued uncertainty about an agreement on Iran's nuclear program also provided a lift. ConocoPhillips (COP) rose 3.4 percent to $67.

In the latest economic data, jobless claims rose in the latest week, though the rise was smaller than anticipated.

Declining issues outnumbered advancing ones on the NYSE by 1,513 to 1,506, for a 1.00-to-1 ratio on the downside; on the Nasdaq, 1,393 issues fell and 1,314 advanced for a 1.06-to-1 ratio favoring decliners.

The benchmark S&P 500 index was posting 13 new 52-week highs and 1 new lows; the Nasdaq composite was recording 76 new highs and 29 new lows.

About 5.78 billion shares traded on all U.S. platforms, according to BATS exchange data, below the month-to-date average of 6.25 billion.

What to watch Friday:

The Labor Department releases import and export prices for March at 8:30 a.m. Eastern time.

The Treasury Department releases federal budget for March at 2 p.m.

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6 Things You Should Rent Instead of Buy

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Market Wrap: Wall Street Ends Higher on Energy Rebound

You probably want to have your own hammer, wrench and screwdriver on hand for those around-the-house projects that spring up, but there's no reason to go out and buy a pricey piece of machinery you'll only use once.

Power sanders, tile saws and post-hole diggers are essential for certain projects, but unless you're an avid carpenter or a DIY enthusiast, chances are you won't use them again anytime soon. Rather than buying them, rent them by the day from stores like Home Depot or Lowe's.

Once your class is over, you'll no longer need the textbooks it requires. Why pay hundreds of dollars for them, especially when the campus bookstore will give you cents on the dollar when you try to sell them back?

Guys have no trouble renting a tuxedo for a wedding or formal event, but when it comes to evening gowns, most women pay top dollar for fancy dresses they only wear once or twice. Rent these dresses instead and you'll not only save money; you'll be able wear a different dress for every occasion without the guilt. Check out RentTheRunway.com, LendingLuxury.com and JJsHouse.com to rent prom dresses, evening gowns, accessories and more.

The trouble with buying video games is they often cost a pretty penny, and you don't know until you start playing the game whether or not you'll love it. If you don't, you'll have a great time playing it through once or twice, and then it sits on a shelf collecting dust.

By choosing to rent your video games through a service like GameFly, you're able to explore a wide range of titles to find which ones you like. If you love one, you can always buy it. If not, just drop it back in the mail and try the next one, no money lost.

Unless you're a fanatic, chances are you need seasonal outdoor gear only once or twice a season, which hardly justifies the expense of buying and storing it year-round.

Rent backpacking and camping gear from stores like REI or websites like MountainSideGearRental.com. Rent jet skis and surfboards from beach vendors. Rent snowmobiles, skis and snowboards from local ski venues and resorts. Unless it's something you plan on making a regular hobby, you're better off renting.

Too many of us have a treadmill in our basement that we bought with the best of intentions, used regularly for about a week, and have since turned into a place to hang laundry while it's drying.

Unless you're an established home gym rat and know that that new elliptical, stationary bike or training unit won't be just a passing fad, go the rental route through sites like GymSource.com and BDFitness.net.